High Tax Economy Fails

Perhaps heavy taxation is not the answer to a nation's economic problems. The idea has been to introduce new tax systems such as the Goods and Services Tax (GST) which is much like the European Value Added Tax. This gives government a lot of money to spend on infrastructure and welfare. But has time proved this economic model to be flawed?

Until the 1970s Australia was a place where individuals struck out on their own. People believed that to work hard, long hours would provide enough income to buy a house, pay for groceries and home wares, and pay for private health insurance. This concept of living has been detrimentally affected by higher taxes which has taken individual choice away.

Now many cannot earn enough on the minimum wage to put a roof over their heads or pay for private health insurance. Even on the minimum wage income tax is taken out, which is ridiculous considering it is so low. The very poor also pay tax when they spend via the GST.

The main cause of the failing high tax economy is globalization. With most unskilled jobs being exported to third world countries it is no wonder the unskilled cannot find work. They rely on unemployment benefits.

Another cause is single parenthood. Mothers expect the state to keep them when they stay at home and bring up children. Men have been happy to love them and leave them, then pay hardly any maintenance.